Bank of Japan Governor Kazuo Ueda expressed confidence on Tuesday that Japan’s economy can absorb the impact of U.S. tariffs.
According to Ueda, the country’s historically high corporate profits will act as a buffer against the economic strain.
Ueda also discussed inflation, stating that although underlying consumer inflation may stall for a brief period, there will be no alteration to the Bank of Japan’s outlook.
The central bank maintains its expectation that inflation will gradually increase toward its 2% target. The governor’s remarks were made during a speech on Tuesday.
